Telecommunications
Research and Development Tax Incentives for the Telecommunications Industry
Many companies in the telecommunications Industry are not aware that the government offers generous research and development (R&D) tax incentive programs. Even companies that are aware often fail to capture the full extent of R&D tax credits that they are entitled. For example, many businesses may be capturing relevant expenses from their R&D cost centers, but not all qualifying R&D activities take place in traditional R&D departments. In many telecommunications companies, prototyping, process development, and testing occur in the plant or on the shop floor, and thus may be overlooked for purposes of the R&D Tax Credit. Additionally, the traditional notions of R&D may cause today’s manufacturers and software developers to limit qualified research expenditures to activities associated with new product and invention developments. However, in many cases, businesses spend a considerable amount of time and effort to develop or improve product designs or processes to achieve optimized performance and meet industry standards.
Examples of Telecommunications Innovations Eligible for R&D Tax Incentives Include the Following:
- Designing and implementing plans for both layout of the physical network and the software technologies necessary to provide required services such as:
- Unified communication VOIP
- Security solutions
- Core routing and switching
- Data centers
- Developing new and improved functional integration for mobile computing, media, and network processes
- Designing and developing for new programming models, algorithms, and parameterized data traffic
- Developing software and processes for data trafficking and data center management
- Developing custom communication networks for specific uses and layouts, including high-speed data, VOIP, and video conferencing
- Developing second generation or improved products
- Integrating new materials to improve product performance and manufacturing processes; testing of prototypes
- Implementing new production standards and quality assurance processes
- Improving product quality, durability, or safety
alliantgroup’s Telecommunications Industry Specialization Team
To better serve the telecommunications industry, alliantgroup has developed an Industry Specialization Program that focuses on the qualifi cation and quanti fication of R&D tax benefi ts for companies operating in this industry. alliantgroup’s Telecommunications Industry Specialization Team employs several individuals who have educational backgrounds and practical experience within the disciplines of manufacturing engineering, industrial engineering, mechanical engineering, electrical engineering, process engineering, and software development. This group has qualifi ed and quanti fied credits for firms ranging from small, privately owned companies to large, multi-national, publicly traded companies.
Manufacturing R&D Tax Credit Whitepaper
Download our free Manufacturing R&D Tax Credit white paper to better understand recent regulatory changes and IRS requirements.
